The Treasury has hinted the chancellor will not overhaul inheritance tax in next month's Budget, despite pressure from his own party.

Responding to reports that Gordon Brown's annual statement could be used to cut or radically shift the burden of the tax onto the rich, the department insisted that "there will be no irresponsible pre-election giveaways".

Instead the Budget is set to focus on entrenching stability and growth, with limited help for first time home buyers.

According to the FT, the Treasury is likely to focus on cutting stamp duty - something which has brought in more money for the Inland Revenue in recent years as house prices have risen.

With the state of the public finances not yet clear, Brown is resisting pressure from parts of the Labour Party to either counter Tory tax cuts or remove thousands of estates from inheritance tax by raising the top rate at which it is paid.